Investment group Sabvest (SBV, SVN), whose ordinary and 'N' ordinary shares are quoted in the Financials-Equity Investment Instruments of the JSE, witnessed a 16% growth in headline earnings per share to 177 cents and a 27% growth in the intrinsic value per share to 1,563 cents for the year ended December.

The growth in HEPS was achieved through higher attributable earnings of associates and the strong share price performance of the listed investments.

Operating costs included once-off amounts totalling R3.5 million which will not recur in 2012.

The increase in intrinsic value was aided by exchange gains on the group's foreign operations and investments through SA Bias Industries and Flowmax due to the weakening of the Rand. Shareholders' funds with investments at intrinsic value increased to R722m.

Net gearing reduced to 6%.

Steadily increasing cash flows from the group's industrial associates have enabled Sabvest to declare an increase in dividends of 41% to 24 cents per share.

With regard to medium-term growth, Sabvest continues to exceed its performance targets. Intrinsic net asset value per share has increased at a compound rate of 21% over the past eight years, dividends per share at 29% and HEPS at 17%.

All of the group's associates are projecting improved earnings in 2012. In addition, most of the companies in the group's investment portfolios are expected to record improved results although the extent to which these will affect listed share prices is obviously uncertain. The group's net operating cash flows are also expected to increase.

“As a result we anticipate a satisfactory year ahead,” Sabvest said. - I-Net Bridge